Network marketing, or multi-level marketing business as it is sometimes called, is a distribution system of goods and services by individuals who are paid a commission to recruit others to also do the same thing. There has been much controversy and legal examination of this type of direct selling system, and not everything has always been peaches and cream.
Nevertheless, network marketing is a viable method of selling goods and services to the public. There are some key features that can be identified that will cause the business model to be effective in its operation. There are also some attributes of the system that will create certain disaster if not handled properly.
These factors are present in any endeavor or business. Businesses fail all of the time due to poor management, inept procedures and lack of financing. Anybody who goes into business should do so with their eyes wide open and they should thoroughly investigate the details before they spend any time or money getting involved.
A key ingredient of any business is the product or service being offered. This is particularly true in network marketing. You have to get past the hype. Avoid the products that promise “miracle” results. The creams, lotions, elixirs, etc. that you can readily buy at Walmart anyway need to be avoided.
The product needs to be something of real value that people can use and it is fairly priced. If people see value they will purchase it. The product has to be the main ingredient. Check the retail stores. Are there products similar to the one being offered by the MLM company? How does the pricing compare?
Is the product something that you could get a booth at a local fair or market stand and sell? Is there a potential demand for the product? Could the product stand on its own apart from the network marketing concept?
Do not get involved in a network marketing company where the product is the same as everyone else’s. There has to be a difference in uniqueness, quality or price.
Once you are satisfied with the product, look at the company. How long has it been in business? Is it financially solid? Look at the financials, and see if it has been profitable several years in a row. Is there a steady upward progress of sales?
Next, take a look at the compensation plan. It needs to be clearly outlined and understood. If it is so complicated that it is difficult to understand at first glance, how will you be able to explain it to others? Some of the compensation plans can get so complex that actually achieving them can seem impossible.
Find out what the emphasis and focus is. Are meetings the main focus? If there is a lot of pressure to attend meetings that may not be what you want. Mature people can move products and services if the products and services are worth moving. In today’s Internet oriented society the company should have an excellent way of utilizing that method for marketing as well as other possibilities.
Find out if the upline and mentors are really teachers and if do they have methods of moving products based on real results. Parties, market stands and fairs, Internet marketing and word of mouth are the ways that people will buy stuff from you. If these methods are available, then you can make it happen, and help others to do the same thing.